Homework Answers
Option C
- Price ceiling refers to the limit that is set either above or below equilibrium price which prevents the sellers from increasing the price or to reduce the quantity they sell .
- When the price ceiling is set in the market below the equilibrium price, the price will be regulated by the supply and demand.
- These supply and demand becomes more and more elastic which causes the shortage under the price ceiling to increase over time.
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O The price and quantity will not change in the legal market There will be inereased...
O The quantity demanded will always be smaller than the quantity su Question 8 2 pts...
O The quantity demanded will always be smaller than the quantity su Question 8 2 pts What will happen in a market where a nonbinding price floor is removed? The products sold will become more plentiful. The price or quantity of the product sold on the legal market will ot change. 0 There will be upward pressure on the prices 0 There will be downward pressure on the pric There will be increased pressure to buy and sell the good...
Question 5 1 pts Suppose that, at the market clearing price of natural gas, the price...
Question 5 1 pts Suppose that, at the market clearing price of natural gas, the price elasticity of demand is -1.2 and the price elasticity of supply is 0.6. What will result from a price ceiling that is 10 percent below the market clearing price? O A shortage equal to 6 percent of the market clearing quantity More information is needed. O A shortage equal to 1.8 percent of the market clearing quantity O A shortage equal to 0.6 percent...
DQuestion5 The restaurant K-38 has determined that the price elasticity of demand for burritos is -1.5.if...
DQuestion5 The restaurant K-38 has determined that the price elasticity of demand for burritos is -1.5.if K-38 raises prices, then revenue will because demand is O increase; inelastic O increase; elastic O decrease; elastic decrease: inclastic DQuestion 6 4 pts In the market for Whizbangs, both demand and supply are very clastic. Imposing a tax in this market would cause: O a small reduction in quantity sold O No effect on quantity sold O a large reduction in quantity sold...
If a price ceiling is imposed below equiibrium in the market for apartments: a. it results...
If a price ceiling is imposed below equiibrium in the market for apartments: a. it results in a surplus of rental units in the near future. b. it acts as an incentive to landlords to invest more money in their property to attract more tenants c. it results in many rental units being poorly maintained. d. it reduces the amount of housing discrimination against minorities. it reduces the resulting shortage by allowing further pice reducins 23. Ifthe minimum wage for...
12. If the price decreases from $10 to $8 and the quantity demanded increases from 50...
12. If the price decreases from $10 to $8 and the quantity demanded increases from 50 units to 55 units the price-elasticity of demand at $10 is _______________________. Thus the price elasticity of demand is _______________________ and therefore total revenue can be increased by ________________________ the price. 13. The elasticity of demand gives the _______________ change in quantity demanded give the __________________ change in price. 14. If Demand is relatively elastic and Supply is also relatively elastic and the government...
Please help If a 26% change in price results in a 18% change in quantity supplied,...
Please help
If a 26% change in price results in a 18% change in quantity supplied, then the price elasticity of supply is about 1.60, and supply is elastic 1.60, and supply is inelastic. 0.69, and supply is inelastic. 0.69, and supply is elastic, The vertical distance between points A and C represents a tax in the market. P4 Supply Demand Refer to Figure 8-3. The amount of tax revenue received by the government is equal to the area OP3ACP1.'...
7. What will happen in a market where a binding price ceiling is removed? a....
7. What will happen in a market where a binding price ceiling is removed? a. There will be downward pressure on the price in the legal market. b. The products sold will improve in quality and become more plentiful. c. Sellers will face a reduced incentive to sell the product. d. Buyers will find the good more difficult to obtain in the legal market. e. There will be increased pressure to buy and sell the good on the black...
5) Suppose a price floor on sparkling wine is proposed by the Health Minister of the...
5) Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect (relative to original equilibrium) on the market for sparkling wine in Vinyardia? a) Quantity demanded will decrease, quantity supplied will increase, and a surplus will result. b) Quantity demanded will increase, quantity supplied will decrease, and a surplus will result. c) Quantity demanded will decrease, quantity supplied will increase, and a shortage will result. d)...
If a binding price ceiling is imposed on the computer market, then the quantity of computers demanded will increase. t...
If a binding price ceiling is imposed on the computer market, then the quantity of computers demanded will increase. the quantity of computers supplied will decrease. a shortage of computers will develop. all of the above. O
1.Positive analysis involves the formulation and testing of hypotheses. involves value judgments concerning the desirability of...
1.Positive analysis involves the formulation and testing of hypotheses. involves value judgments concerning the desirability of alternative outcomes. weighs the fairness of a policy. examines if the outcome is desirable. 2.Because a price ceiling causes a shortage, some form of rationing must occur. a surplus, some form of rationing must occur. a shortage, the outcome will be efficient. a surplus, the outcome will be inefficient. 3.For a price ceiling to have an impact on a market, it must be set...
O The quantity demanded will always be smaller than the quantity su Question 8 2 pts What will happen in a market where a nonbinding price floor is removed? The products sold will become more plentiful. The price or quantity of the product sold on the legal market will ot change. 0 There will be upward pressure on the prices 0 There will be downward pressure on the pric There will be increased pressure to buy and sell the good...
Question 5 1 pts Suppose that, at the market clearing price of natural gas, the price elasticity of demand is -1.2 and the price elasticity of supply is 0.6. What will result from a price ceiling that is 10 percent below the market clearing price? O A shortage equal to 6 percent of the market clearing quantity More information is needed. O A shortage equal to 1.8 percent of the market clearing quantity O A shortage equal to 0.6 percent...
DQuestion5 The restaurant K-38 has determined that the price elasticity of demand for burritos is -1.5.if K-38 raises prices, then revenue will because demand is O increase; inelastic O increase; elastic O decrease; elastic decrease: inclastic DQuestion 6 4 pts In the market for Whizbangs, both demand and supply are very clastic. Imposing a tax in this market would cause: O a small reduction in quantity sold O No effect on quantity sold O a large reduction in quantity sold...
If a price ceiling is imposed below equiibrium in the market for apartments: a. it results in a surplus of rental units in the near future. b. it acts as an incentive to landlords to invest more money in their property to attract more tenants c. it results in many rental units being poorly maintained. d. it reduces the amount of housing discrimination against minorities. it reduces the resulting shortage by allowing further pice reducins 23. Ifthe minimum wage for...
Please help
If a 26% change in price results in a 18% change in quantity supplied, then the price elasticity of supply is about 1.60, and supply is elastic 1.60, and supply is inelastic. 0.69, and supply is inelastic. 0.69, and supply is elastic, The vertical distance between points A and C represents a tax in the market. P4 Supply Demand Refer to Figure 8-3. The amount of tax revenue received by the government is equal to the area OP3ACP1.'...
If a binding price ceiling is imposed on the computer market, then the quantity of computers demanded will increase. the quantity of computers supplied will decrease. a shortage of computers will develop. all of the above. O
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